What is a Personal Umbrella Policy?
A personal umbrella policy is a secondary form of liability insurance. As a secondary insurance, it supplements one or more underlying, primary policies. A policy may be used to supplement a homeowners, renters, auto, boat, or other insurance policy.
There are two ways that umbrella insurance might supplement underlying policies. Depending on a person’s needs, it might be used to fill in coverage gaps that the primary policies have, or it may be used to add onto the limits of underlying policies. If needed, a single umbrella policy may be able to serve both purposes for multiple underlying policies.
Who Should Consider Getting Personal Umbrella Insurance?
Anyone may benefit from getting personal umbrella insurance, but there are two types of individuals that this insurance is especially good for. Individuals with a lot of assets might need the added protection, as they can be a target of lawsuits, and people who are exposed to a lot of risk might need the extra insurance coverage.
Some Massachusetts residents who might benefit a lot from an umbrella policy include:
- People with a high net worth
- Dog owners (especially those whose dog is an aggressive dog breed)
- Landlords and people who rent out a room in their home
- Individuals who have a specialized vehicle (e.g. pilots, bikers, and boaters)
- Individuals who wants additional liability limits
(This isn’t a comprehensive list but just a few examples of people who may want an umbrella policy).